Pandemic recovery fuels growing
ON, Aug. 9, 2022 /CNW/ - Aegis Brands
Inc. (TSX: AEG) ("Aegis," "the Company") has reported financial
results for the second quarter ending June
26th, 2022, reflecting improvements on key
"Our strategies to take advantage of pandemic recovery are
bearing fruit," said Steve Pelton,
President and CEO, Aegis Brands Inc. "With the food and beverage
recovery well underway and our actions to grow new revenue
channels, Aegis is well-positioned to build on this momentum in the
- Bridgehead's same coffeehouse sales for the quarter rose 40
percent from the comparable quarter in 2021, but have yet to reach
- Revenue for the quarter increased by 36 percent to $3,240,000, from $2,383,000 in the same quarter last year.
- Net loss for the quarter was $2,816,000 or $0.12
per share. However, when adjusted for the non-cash revaluation of
warrants and securities, Aegis had net earnings of $23,000 or $0.01
per share for the quarter, compared to a loss of $5,101,000 or $0.22
per share for the same quarter last year.
- Subsequent to the quarter, Aegis' Development Line of Credit
(DLOC) with CWB Franchise Finance (CWB) was increased by
$3,000,000, to $30,000,000. No amount has been drawn on this
facility to date. This DLOC provides Aegis with financial support
to pursue its acquisitions and is in addition to the $3,000,000 line of credit already in place for
general operating needs.
Bridgehead's revenue from increased to $3,240,000 from $2,383,000, or 36 percent, in the same quarter
last year. Year-to-date revenue rose to $5,782,000, from $4,610,000 in 2021.
Bridgehead coffeehouse sales continued to grow throughout the
second quarter as more and more people returned to office
work. Coffeehouse sales in the 13 weeks ended June 26th, 2022 were $2,810,000 compared to $1,877,000 in the second quarter of 2021,
representing an increase of $938,355
or 50 percent. This result combines a 40 percent increase in same
coffeehouse sales over the comparable quarter last year with sales
from two new locations.
Bridgehead's net income was $459,000 compared to a net loss of $23,000 in the same quarter last year.
Year-to-date the business had a net loss of $140,000 compared to a loss of $5,000 in 2021. Pandemic and "Freedom Convoy"
subsidies received in the second quarter bolstered results in the
"Concurrent with our focus on growing in-store sales, we
continue to invest in growth in both the wholesale and e-commerce
of our business," said Pelton. Bridgehead recently
hired experienced senior leaders to head up these channels.
Investments continue in the redesign of the website; e-commerce
functionality; and new marketing initiatives to support e-commerce,
wholesale, and the traditional coffeehouse business.
In the quarter, Bridgehead entered a national
broker/distributor agreement to further accelerate the growth
of the wholesale business. The broker distributor partner was
chosen due to its history in successfully selling and distributing
high quality, socially- and environmentally-responsible coffee
in grocery stores across the country and they have the
industry know-how and relationships to do it again with
"We are excited to begin this partnership and are looking
forward to bringing the Bridgehead coffee experience to people
across Canada," said
Kate Burnett, President of
Bridgehead. "Our wholesale business is up over 30 percent over
last year and we have only just begun with the marketing and
distribution required to realize our targets in this segment of the
business," continued Burnett.
Aegis Brands Inc.
Aegis's adjusted EBITDA from continuing operations for the
quarter was $320,000 when adjusted
for the non-cash revaluations of Kiaro and Meta warrants and Kiaro
shares of $2,904,000 (2021 - $nil).
The book value of the Kiaro investment as of Q2 is $1,652,000, which has been written down by
$4,977,000 since Q3 of 2021.
Steven Pelton resigned from the
Kiaro board as of July
As the company continues to recover from the pandemic, Aegis
continues advance its previously disclosed strategy of pursuing
acquisitions in the hospitality/food and beverage space. "We have
committed to becoming a consolidator of great brands, and we
will only pursue companies we believe we can help grow beyond their
current trajectory," added Pelton.
Aegis measures the success of its business in part by employing
several key performance dictators, referenced herein, including
Same Store Sales and EBITDA, that are not recognized under IFRS.
These indicators should not be considered an alternative to IFRS
financial measures, such as net income, and are presented in this
report because Aegis management believes that such measures are
relevant in interpreting the performance of its business. As
non–IFRS financial measures do not have standardized definitions
prescribed by IFRS, they are less likely to be comparable with
those of other issuers or peer companies. A description of the
non–IFRS measures used by Aegis in measuring its performance and a
reconciliation of certain non–IFRS measures to the nearest
IFRS measure is included in Aegis' management's discussion and
analysis for the first quarter ended March
27th, 2022, available on SEDAR at
This press release contains forward-looking statements within
the meaning of Canadian securities laws. These forward-looking
statements contain statements of intent, belief, or current
expectations of Aegis. Forward-looking information is often, but
not always, identified by the use of words such as "anticipate,"
"believe," "expect," "plan," "intend," "forecast," "target,"
"project," "may," "will," "should," "could," "estimate," "predict"
or similar words suggesting future outcomes, or language suggesting
The forward-looking statements included in this press release,
including statements regarding the nature of Aegis'
growth strategy going forward and Aegis' execution on any
of its potential plans (including with respect to the growth and
development of Bridgehead Coffee and identification of future
acquisition targets), are not guarantees of future results and
involve risks and uncertainties that may cause actual results to
differ materially from the potential results discussed in the
Risks and uncertainties that may cause such differences include
but are not limited to: risks related to the company's
strategy going forward; risks related to the COVID-19 pandemic; and
other risks inherent in the industry in which Aegis operates.
Accordingly, readers should not place undue reliance on the
forward-looking statements and information contained in this news
release. Additional information on these and other factors
that could affect Aegis' operations or financial results are
included in reports on file with applicable securities regulatory
authorities and may be accessed through the SEDAR website
In respect of the forward-looking statements and information
included in this press release, Aegis has provided such in reliance
on certain assumptions that it believes are reasonable at this
time, including the ability of the company to manage the risks
(economic, operational, financial, and other risks) associated with
the COVID-19 pandemic, the ability of the company to identify new
acquisition opportunities and to successfully integrate past and
future acquisition targets into the company's business, and the
company's ability to generally execute on its strategy going
The forward-looking statements in this press release are made as
of the date it was issued and Aegis does not undertake any
obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable
About Aegis Brands Inc.
Aegis Brands Inc. currently owns and operates
Bridgehead Coffee. The company's vision is to build a portfolio of
amazing brands that can grow and flourish with access to our
resources and expertise. The company is committed to letting each
brand operate independently while providing shared expertise to
help them thrive.
For more information, please visit aegisbrands.ca.
SOURCE Aegis Brands Inc.